What's Happened
XTEK Limited (ASX: XTE, ‘XTEK’) has sent a letter to investors from Managing Director Philippe Odouard which details the achievements and milestones the company has met in 2019.
What are the key highlights?
Key highlights of 2019 featured in the letter Include:
- The strategic acquisition of HighCom Armour Solutions, Inc (“HighCom”), which provides XTEK with direct access to the lucrative US market.
- The development of XTEK’s XTclave™ factory in Adelaide, Australia, which is currently in the final stages of completion.
- Record FY19 financial performance which was underpinned by the continued growth of the Small Unmanned Aerial Systems (SUAS) business.
- The enhancement of XTEK's capabilities to be a full-service SUAS supplier, with the ability to supply and provide ongoing support throughout the SUAS lifecycle.
- First international XTatlas™ orders.
- Building formal relationships within the Space sector including with organisations such as Skykraft and the Australian Space Agency.
- The exclusive reseller agreement of Heckler & Koch products in Australia.
What to expect moving ahead
The company expects the first XTclave™ manufactured products to be launched in the US in early 2020, following the integration of HighCom’s operations, expertise and experience into XTEK. This is also expected to coincide with the opening of XTEK’s XTclave™ factory in Adelaide, Australia.
As US defence and military contract require US-based manufacturing and production, XTEK’s long-term plan is to develop its existing manufacturing capabilities in the US in order to target these valuable U.S. contracts.
